CORP SNAPSHOT: DT alone on Monday, duo join the pipeline

Equity markets are holding onto the gains seen Friday, but despite an upbeat tone it is a slow start to the new week with just one corporate borrower live on Monday.

That is namely German national champion Deutsche Telekom which is opening its 2025 account with a EUR dual-tranche benchmark offering across 7yr and 20yr tenors.

DT is kicking off what is expected to be a more measured week in terms of volumes, with contributors to our latest issuance poll putting forward an average estimate of EUR9bn.

As a reminder, it was another bumper week last week where the final euro IG corporate haul finished at EUR12.75bn versus the EUR11.5bn estimate.

Strong demand was again noted with final investor interest of EUR55.4bn chasing last week’s total, which in turn allowed for some economic funding for the latest batch.

The average NIC paid up was 0.72bps, with a number of names able to issue either flat to, or inside, fair value valuations.

That after an average spread compression of 39.74bps was recorded during the execution process, although tighter pricing levels came at the expense of a few orders where combined demand had earlier peaked at EUR69.3bn.

See the IGM CORP WEEKLY for a full recap.

Summary of last week's EUR IG corp trades:

DT engaging investors with two-part

** Germany's Deutsche Telekom AG (Baa1/BBB+/BBB+) this morning hired Citigroup, NatWest and RBC Capital Markets as Joint Bookrunners for a dual-tranche EUR 7yr and 20yr dual-tranche offering

IPTs:

EUR Feb 2032 benchmark at m/s +95 area

EUR Feb 2045 benchmark at m/s +160 area

• Proceeds from the two-part trade are to be used for general corporate purposes
• DT has a number of outstanding euro lines which we spotted trading on screens this morning as per the below
• Adjusting the existing curve, we saw fair value for the new 7yr at m/s +60, which bankers off the trade agreed with, whilst it is slightly more subjective on the 20yr given the paucity of longer outstanding debt

i+

DT EUR1bn 1.75% Mar 2031 +56 (Mar 2019)

DT EUR850m 1.375% Jul 2034 +72 (Jul 2019)

DT EUR850m 3.25% Jun 2035 +86 (Nov 2024)

DT EUR750m 3.25% Mar 2036 +89 (Mar 2024)

DT EUR500m 2.25% Mar 2039 +91 (Mar 2019)

DT EUR715m 1.75% Dec 2049 +125 (Dec 2019)

Fresh in the pipeline

** Sudzucker International Finance B.V, guaranteed by Sudzucker AG (Baa2/BBB), a German integrated group of companies with plant-based solutions for food, animal feeding and energy industries, has mandated Helaba, HSBC, ING, KBC, Rabobank as Joint Bookrunners to arrange a series of fixed income investor calls commencing on Monday (20-Jan). A EUR 7yr benchmark senior unsecured bond transaction may follow. The notes are expected to be rated BBB by S&P. The use of proceeds of the potential bond offering is general corporate purposes including the refinancing of a EUR500m 1% ex-8yr bond maturing Nov 2025

** ITM Entreprises from the Groupement Les Mousquetaires (BBB-/BBB), a French leading independent retailer, and owner of several retail brands in France, including the prominent INTERMARCHE, has mandated BNP Paribas, Natixis and Societe Generale as Global Coordinators, and Credit Agricole CIB, HSBC, La Banque Postale as Joint Active Bookrunners to arrange a series of fixed income investor calls starting Monday (20-Jan). A EUR 5yr senior unsecured fixed rate benchmark transaction is expected to follow. New issue proceeds will be used for general corporate purposes and for the refinancing in part of the syndicated bridge facility provided in connection with the acquisition of Casino’s stores

Already in the pipeline

** Stoneweg European REIT (BBB-/BBB-), a diversified pan-European logistics and office REIT, formerly known as Cromwell European REIT, mandated Citi, Credit Agricole CIB, Deutsche Bank AG and ING as Active Bookrunners and ING as Sole ESG Structuring Advisor to arrange a series of fixed-income investor calls on 17-Jan and physical meetings in London on 20-Jan. A EUR500m (exp) 6yr senior unsecured green transaction is expected to follow

** J Sainsbury plc (Baa3/BBB) has mandated BNP PARIBAS, HSBC, Lloyds and NatWest Markets as Active Bookrunners to arrange a series of fixed income investor calls commencing 20-Jan. A GBP dual-tranche benchmark senior unsecured bond offering with long 5yr and 10yr tenors will follow

Performance tracker of recent EUR IG/split-rated benchmark deals

---- Subscribe to read more ----

To receive this analysis plus much more, subscribe to IGM. Request your free trial of the service today.